New Zealand Explores Sustainable Textile Regulations Aligned With EU Standards

New research released by the Textile Advisory Group shows regulated product stewardship (RPS) for textiles could add $602 million to the economy and bring significant environmental, social and sector benefits for New Zealand.

“Regulated product stewardship is the foundation of a resilient, fair and thriving textile industry in Aotearoa New Zealand, this is especially important in times of economic uncertainty,” says Textile Advisory Group spokesperson Bernadette Casey.

“Beyond the economic and environmental gains, this research shows that the numbers stack up for the evolution of the sector to one in which there is a level playing field for New Zealand businesses, affordable clothing remains accessible for everyone, and circular design practices create more jobs.”

RPS is a system that allows for the end of life cost of a product to be paid at the point it is placed on the market, usually via a small fee paid by the producer.  The report by global consultancy Eunomia outlines two RPS pathways, a modest and a high‑ambition option.

Findings include:

• A $98 million net benefit under the modest RPS scenario and a $602 million net benefit for the high ambition scenario.

• Employment could grow by up to 6% by 2038. With opportunities across repair, reuse, recycling, research and innovation, and consumer engagement.

• Currently, 78% of textiles end up in landfill (107,000 tonnes/year), with just 6% reused or recycled in New Zealand.

• Under a high ambition RPS scheme, landfill could fall to just 4% by 2038, with a 23% reduction in consumption, and 86% of what is bought, reused or recycled.

• For regular (mid-price) fashion items, price would increase by 1.8% on a modest ambition scenario and 2.9% for high ambition RPS.

• For super fast-fashion, the retail price would increase 7% and 11% under the different scenarios (for a $25 top this would be a $1.80 or $2.90 increase respectively). Properly funded reuse (e.g. hire/lease) and repair initiatives, meanwhile, would improve access to good quality clothing.

• Carbon emissions could be reduced by up to 10.8 million tonnes by 2038, with carbon reduction benefits valued at $900 million under the low ambition scenario and $1.6 billion under the high ambition.

“Retail price increases for clothing under RPS would likely be small and while purchasing lower quality clothing costs the consumer more in the longer run, price is important with cost of living pressures. Consumers would benefit from higher quality products that deliver better value for money over time.”

Fast fashion is costing New Zealand charities too with increasing reports of high volumes of unsellable, low quality clothing donations that have to be sent to landfill.

RPS for textiles would generate funding for research and circular design, infrastructure and systems for reuse and recycling, and consumer education campaigns. A high ambition scheme would go further with kerbside textile collection, digital product passports, and would result in significantly higher reuse and recycling.

A well‑designed RPS would introduce compliance and funding obligations for producers, with most costs falling on low‑quality imports, the research shows the overall benefits outweigh the costs. Including the reduced pressure on local councils’ waste systems, increasing the value of recycled materials, and creating new revenue streams for New Zealand businesses.

Eco‑modulated incentives are a key part of RPS and encourage better product design. Rewarding producers for improving durability, repairability and recyclability in textiles aims to encourage investment in better products.

“This research shows it is possible to have a strong local textile industry where businesses compete on quality rather than volume; and responsible production supports investment in innovation, textile recycling and circular business models, resulting in increased value for all.”